UPDATE 1-European car sales plunge in December ends woeful year

FRANKFURT, Jan 16 (Reuters) - Demand for new cars in Europefell to the lowest level recorded since 1995, closing a yearburdened by heavy declines in all major euro zone economies.

Two fewer working days on average helped send new carregistrations in the European Union tumbling 16.3 percent lastmonth to 799,407 vehicles, according to data published onWednesday by the European automotive industry association ACEA.

The figures highlight the crisis for automakers in Europe,where over-indebted banks will not lend cash-strapped consumersthe funds to buy new cars as austerity pushes joblessness to arecord high of almost 12 percent.

Over the whole year, demand for new cars fell 8.2 percent,the biggest drop since the 16.9 percent downturn in 1993. TheDecember plunge is the steepest recorded in that month since2008.

Exceptions last month were non-euro zone EU members such asBritain and Sweden, where demand increased. But states not evenin the EU like Switzerland and Norway suffered contractions.

Annual car sales volumes in the EU fell 8.2 percent to 12.05million vehicles in 2012, the ACEA said. In the euro zone, theydropped 11.3 percent to just under 9 million, according toReuters calculations.

For 2013, market forecaster LMC Automotive recentlyestimated a 3.1 percent drop in western European sales to 11.4million vehicles, compared with levels of around 12.8 and 13million in 2011 and 2010, respectively.

Among the worst hit last month were U.S. carmakers GeneralMotors and Ford, where group sales each fellroughly 27 percent, with the Chevrolet brand leading them alllower and posting an even weaker month than its ailing sisterOpel.

Even Volkswagen's sales of its core VW brandfell 22 percent. The December plunge at its luxury brand Audinearly matched that.

Korean brands Hyundai and Kia remained a rare bright spot, gaining 10.5 percent and 6.8percent respectively. The duo have made a name for themselveswith attractively designed affordable cars that enjoy longwarranties.